A loan and security agreement is a type of a loan agreement in which the lender of the money gets certain security for the amount lent by him/her/it to the borrower. Any such agreement is made between a borrower and a lender and is used quite commonly in the cases when a large sum of money is borrowed by a borrower. These agreements also focus on the kind of security that the borrower gives to the lender for a situation in which the borrower fails to make the payment with interest.
A loan and security agreement consists of details like information about the involved parties, information about the money put on loan, information about the interest and security and the terms and conditions of the agreement which have been mutually discussed and decided amongst the parties involved in the loan. These terms and conditions are legally enforceable in nature and cannot be violated.
Loan and Security Agreement
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